The House of Representatives has urged the Central Bank of Nigeria (CBN) to suspend the newly implemented increase in Automated Teller Machine (ATM) transaction charges due to the challenging economic conditions in the country.
This decision followed the adoption of a motion sponsored by Marcus Onobun, the member representing Esan Central/Esan West/Igueben Federal Constituency, Edo State, during Tuesday’s plenary session.
Onobun, addressing his colleagues, pointed out that the CBN had issued a circular announcing an increase in ATM withdrawal fees and the termination of free ATM withdrawals for customers using other banks’ machines, adding a financial burden on Nigerians.
Under the new policy, customers using their bank’s ATMs will still enjoy free withdrawals. However, a N100 charge will apply to N20,000 withdrawals made through other banks’ ATMs within the bank’s premises. For ATMs outside the bank’s premises, such as in malls or public areas, customers will face a N100 fee plus an additional N500 surcharge.
Onobun argued that Nigerians are already enduring significant economic hardships, such as high inflation, rising fuel costs, increased electricity tariffs, and various banking and service fees that are draining disposable income.
He expressed concern that the new ATM charges would discourage low-income earners from accessing banking services, further hindering financial inclusion efforts, which contradicts the CBN’s objectives.
He also noted that the banking sector continues to report substantial profits, and imposing additional charges without any corresponding improvements in services or infrastructure is unjustifiable.
The Speaker, Tajudeen Abbas, put the motion to a voice vote, and it was overwhelmingly supported by the lawmakers. The House then called on the CBN to immediately suspend the policy and engage with the relevant committees on Banking, Finance, and Financial Institutions for further consultation.
